Daniel Proussalidis, Parliamentary Bureau

OTTAWA - The American Petroleum Institute (API) predicts the U.S. State Department's recommendation on the Keystone XL pipeline will come out as early as Thursday.

"It's our expectation it will be released next week," Reuters quoted API's chief executive Jack Gerard saying last week.

Gerard also says expects the report to find "no significant impact on the environment" from the project to connect Alberta's oilsands to Texas refineries.

However, if the U.S. State Department finds problems with Keystone XL, Liberal Leader Justin Trudeau says he knows where to place blame.

"This government's complete and total failure in terms of reassuring not just Canadians but our trading partners that this government is serious about environment oversight and regulation is why there's such a low level of confidence in energy projects these days and it's hurting us with our most important trading partner, the United States,' Trudeau said Monday.